Carbon Creek Coal Field

The Carbon Creek property is in the Peace River Coalfield and consists of twelve Coal License Applications and ten Crown Granted District Lots, comprising a tenure parcel of 17,200 hectares. Labour for this project will be recruited from throughout Canada and will live in the surrounding community of Hudson's Hope.

About This Project

The Carbon Creek coal deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia. The project has a current resource estimate of 166.7 million tonnes measured and indicated with an additional 167.1 million tonnes inferred.

Cardero Resources Corporation has completed multiple N.I. 43-101 reports; Resource Estimate (June 2011), Preliminary Economic Assessment (January 2012), and Prefeasibility Study (November 2012). The Prefeasibility Study (click for Full report) estimates an NPV8 of 633 million, and an IRR of 24% (on a post-tax, 100% basis). In 2013 the company has been working towards a bankable feasibility study.

The Carbon Creek property lies 20 km west of the District of Hudson's Hope. Improved forest service roads connect the property with BC Highway 29 between the towns of Chetwynd and Hudson's Hope. The CN Rail line provides direct access to the ports of Vancouver and Ridley Terminals in Prince Rupert, BC.

Direct labour requirements for this project are anticipated to reach 572 full-time employees through year 7 of the project, and an additional 600 employees to service eight underground units from year 8 through year 30 of the Carbon Creek Coal Field project.

It is expected that the surface mine will begin operations first, with the underground mine beginning operations two years after the surface mine, allowing time to develop an area to access the underground mineable coal seams. The combined mining operation is planned for 30 years excluding pre-production development and construction time. The underground mine is expected to begin production in the third year of mine operations at .59 million tonnes per annum (Mtpa) ROM increasing to the steady state level of 4.7 Mtpa ROM by the beginning of the eighth year of mining operations.